Correlation Between XOMA Corp and Eliem Therapeutics
Can any of the company-specific risk be diversified away by investing in both XOMA Corp and Eliem Therapeutics at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining XOMA Corp and Eliem Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between XOMA Corp and Eliem Therapeutics, you can compare the effects of market volatilities on XOMA Corp and Eliem Therapeutics and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in XOMA Corp with a short position of Eliem Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of XOMA Corp and Eliem Therapeutics.
Diversification Opportunities for XOMA Corp and Eliem Therapeutics
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between XOMA and Eliem is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding XOMA Corp and Eliem Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eliem Therapeutics and XOMA Corp is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on XOMA Corp are associated (or correlated) with Eliem Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eliem Therapeutics has no effect on the direction of XOMA Corp i.e., XOMA Corp and Eliem Therapeutics go up and down completely randomly.
Pair Corralation between XOMA Corp and Eliem Therapeutics
Given the investment horizon of 90 days XOMA Corp is expected to generate 0.53 times more return on investment than Eliem Therapeutics. However, XOMA Corp is 1.87 times less risky than Eliem Therapeutics. It trades about 0.07 of its potential returns per unit of risk. Eliem Therapeutics is currently generating about 0.03 per unit of risk. If you would invest 1,774 in XOMA Corp on August 31, 2024 and sell it today you would earn a total of 1,571 from holding XOMA Corp or generate 88.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.47% |
| Values | Daily Returns |
XOMA Corp vs. Eliem Therapeutics
Performance |
| Timeline |
| XOMA Corp |
| Eliem Therapeutics |
XOMA Corp and Eliem Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with XOMA Corp and Eliem Therapeutics
The main advantage of trading using opposite XOMA Corp and Eliem Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if XOMA Corp position performs unexpectedly, Eliem Therapeutics can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Eliem Therapeutics will offset losses from the drop in Eliem Therapeutics' long position.| XOMA Corp vs. Werewolf Therapeutics | XOMA Corp vs. Edgewise Therapeutics | XOMA Corp vs. Celcuity LLC | XOMA Corp vs. C4 Therapeutics |
| Eliem Therapeutics vs. Pmv Pharmaceuticals | Eliem Therapeutics vs. MediciNova | Eliem Therapeutics vs. Pharvaris BV | Eliem Therapeutics vs. PepGen |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon |